No, the man clearly meant choosing between a human, ghoul, deathclaw, supermutant or whatever other form. They are all present in Fallout, and since the most convenient way to denote these things is call them races, that's what he did.
Now, I think it's a really bad idea. Fallout has always been about the survival of the human race, about positive steps forwards, and human nature fucking things up. About many things, but all pertaining to human emotions and actions, and that shouldn't be changed.
Even the supermutants were the result of human actions, the twisted mind of Richard Grey who tried to create a better world.